Loan Information

Student Loans

Student loans, unlike grants and work-study, are borrowed money that must be repaid with interest. You cannot have these loans canceled because you didn’t like the education you received, didn’t get a job in your field of study or because you’re having financial difficulty. Loans are legal obligations, so before you take out a student loan, think about the amount you’ll repay over the years. Learn the basics and manage your loan debt. Watch the videos Responsible Borrowing to learn about your responsibilities as a borrower and what you should consider when taking out loans for college and Repayment: How to Manage Your Student Loans to learn more about changing repayment plans, postponing or reducing your payments, or combining your federal student loans. You may also visit StudentLoans.gov and then click on Managing Repayment at the top of the page for more information.

Loan funds will be disbursed in two separate installments per semester. First disbursement will be applied 30 days after the start of the semester. The second disbursement will be applied after the mid-point of the semester. Any remaining balance of loan funds, after tuition, fee, book and supply charges are paid, will be mailed to your address on file with the College.

The Direct Subsidized Loan enables undergraduate or graduate students who show financial need to borrow money to help pay for their educational expenses. Generally interest does not accrue until the student graduates, withdraws from school or drops below half-time. Students who receive Direct Stafford Subsidized Loans for the first time on or after July 1, 2013 may start incurring interest while in school. Learn more about the new 150% rule.

The Direct Unsubsidized Loan enables undergraduate or graduate students to borrow money to pay for their educational expenses regardless of financial need. Interest accrues on an unsubsidized loan while a student is in school. The student may choose to pay the interest while in school to avoid paying interest on interest.

A Parent Plus Loan (PLUS) enables parents with good credit history to borrow to help pay the expenses of each child who is a dependent, undergraduate student. Interest accrues beginning with the 1st disbursement. Repayment of principal and interest begins while the student is in school – within 60 days after the final loan disbursement is made for the period of enrollment for which the funds were borrowed.

To request a Direct loan, log in to MyDelta and complete the Federal Stafford Loan Application found in the Financial Aid section.

To request a Plus loan, log in to StudentLoans.gov and click on request a Direct Plus Loan.

Federal Direct Stafford Loan

The Federal Direct Subsidized and Unsubsidized Loan programs carry both annual and cumulative (lifetime) limits. Your SAR (Student Aid Report) lists your cumulative loans, but it is important that you also keep records of all your loan transactions. You can also look up your loan history online at nslds.ed.gov.

Subsidized and unsubsidized are available. Both are paid back after graduation.

The Direct Subsidized Loan enables undergraduate or graduate students who show financial need to borrow money to help pay for their educational expenses. Generally interest does not accrue until the student graduates, withdraws from school or drops below half-time. Students who receive Direct Stafford Subsidized Loans for the first time on or after July 1, 2013 may start incurring interest while in school. Learn more about the new 150% rule.

Interest accrues on an unsubsidized loan while you are in school. You may choose to pay the interest while in school or capitalize the interest.

To request a loan, log in to MyDelta and complete the Federal Direct Student Loan Request found in the Financial Aid section.

Federal Direct Stafford Loan Limits:

Yearly Maximums (beginning 2008-2009)

Student Level
& Dependency Status

Maximum Stafford
(subsidized and unsubsidized)

Maximum Subsidized

Dependent freshman

$5,500

$3,500

Dependent sophomore

$6,500

$4,500

Independent freshman

$9,500

$3,500

Independent sophomore

$10,500

$4,500

Lifetime limits (beginning 2008-2009)

Student Level
& Dependency Status

Maximum Stafford
(subsidized and unsubsidized)

Maximum Subsidized

Dependent undergraduate

$31,000

$23,000

Independent undergraduate

$57,500

$23,000

If you reach your lifetime loan limit, you cannot receive any more of that type of loan. If you exceed your limit, aid already disbursed will be billed back. You will have to find alternate ways to finance your education. Therefore it is to your advantage to borrow only what you need for educational expenses, and to keep track of your cumulative debt. Financial Aid advisors are happy to work with you to find ways to minimize your borrowing.

Interest Rates

The following interest rates are effective for all Direct Loans with a first disbursement on or after July 1, 2014 through June 30, 2015.

The Federal Direct Loan interest rate of Direct Subsidized Loans and Direct Unsubsidized Loans for undergraduate students is 4.66%.

Interest rates will be a “variable-fixed” rate. This means that students may receive a new rate with each new loan, but the rate will be fixed for the life of the loan. New interest rates will be set each July 1 through the following June 30 by the Department of Education.

Loan Fees

As of October 1, 2014, Federal Direct (Stafford) Loans require a 1.073 percent origination fee that students must pay at the time of disbursement.

As of October 1, 2015, Federal Direct (Stafford) Loans require a 1.068 percent origination fee that students must pay at the time of disbursement.

Federal Direct Parent Plus Loans

Enables parents with good credit history to borrow funds to help pay for the cost of their child's education. Students must be dependent as defined by the Federal government on FAFSA, enrolled at least half-time and maintaining satisfactory academic progress.

Student must have completed a FAFSA and have it on record with the college.

Repayment begins within 60 days after the final loan disbursement is disbursed for the period of enrollment for which the parent has borrowed for their student. Therefore, the first payment of a fall/winter loan will usually be due in February.

No grace period. Interest begins to accumulate at the time the first disbursement is made.

Parents who have Plus loans must begin repaying both principal and interest while student is in school or request deferment on the payment(s) of this loan as long as the student is maintaining half-time enrollment. www.StudentLoans.gov

No loan meeting is required.

The maximum a parent can borrow is equal to the cost of attendance (COA) minus any other financial aid the student receives.

To endorse the Direct Parent Plus Loan after the Request Process, visit www.StudentLoans.gov and go to Endorse Plus Loan.

Options if PLUS is not approved

Parent may be approved with an endorser (co-signer).

Student may complete a Stafford Loan application and select the PLUS REPLACEMENT option of the loan. This enables the student to borrow additional unsubsidized loan with proof of Plus denial, up to an additional $4000.

Private alternative loans may be available.

Federal Direct Plus Loans for Graduate and Professional Degree Students

Delta College is a community college and does not offer graduate degree programs; therefore, students are not eligible to apply for the Federal Direct Plus Graduate and Professional Degree loans.

Additional Information

Average Federal Direct Stafford loan debt for a Delta College student is $3584 as of the 2013-2014 school year.

Alternative Educational Loans

Prior to applying for an alternative educational loan, Delta College strongly encourages students to complete the FAFSA. Doing so, allows students to be considered for grants, as well as for Federal Direct student loans. For Federal Direct student loan consideration, students must also complete entrance loan counseling and a Master Promissory Note (MPN) at www.StudentLoans.gov and Delta’s loan request form available through MyDelta.

Federally funded Direct undergraduate student loans do not require a credit check or co-signer and offer fixed interest rates that are often more advantageous than alternative educational loans.

Alternative educational loans may be available as an option for students whose program of study is not eligible for Federal Title IV financial aid, students who are not maintaining standards of academic progress, or those who show remaining need after all other financial aid is subtracted from their college's cost of attendance. In order to be eligible for an alternative educational loan at Delta College, you must be enrolled at least half-time. The combination of alternative loans and Federal, state and institutional aid and resources you are awarded cannot exceed the cost of attendance.

Following is an alphabetical listing of some private lending institutions that have offered alternative educational loans to Delta College students in the past three to five years. This listing is offered to assist those interested in researching alternative educational loan options. It is not intended as a comprehensive directory of private lenders and does not constitute an endorsement by Delta College of alternative educational loans or of specific lending institutions. We encourage students to visit lender websites to compare interest rates, repayment options and other loan terms and conditions. We also suggest that you investigate other alternative educational loan options, including your local bank or credit union.

Note: Students must be seeking an eligible degree, certificate, or license.

The Higher Education Opportunity Act of 2008 requires that before a private educational lender may finalize a private education loan for a student in attendance at an institution of higher education, the private lender must obtain the signed, completed self-certification form. Most lenders will provide this form directly to students. If your lender does not, you can obtain a Private Education Loan Applicant Self-Certification form at the Delta College Financial Aid Office.